A company issued 60 shares of $100 par value stock for $7,000 cash.The total amount of paid-in capital in excess of par is:
A)$ 100.
B)$ 600.
C)$1,000.
D)$6,000.
E)$7,000.

Question

Quizplus · Accepted Answer

The total amount of paid-in capital in excess of par is calculated as the difference between the cash received and the par value of the shares. The par value of 60 shares is 60 x $100 = $6,000. The cash received is $7,000. Therefore, the paid-in capital in excess of par is $7,000 - $6,000 = $1,000.

A Company Issued 60 Shares of $100 Par Value Stock